The ecosystem of Solana found himself in knee-deep trouble caused by fear, insecurity and doubt around him links with the disgraced crypto exchange FTX.
Since then, the ecosystem has tried to distance itself from Sam Bankman-Fried, with Messari even releasing one detailed overview of the ecosystem already on December 15th.
But a new project called Good has been making headlines lately as the price has skyrocketed over the past few days.
What is BONK and what can it bring to the Solana ecosystem?
According to Bonks official siteBonk represents the Solana community that made the Solana ecosystem great in the first place. It is the first Solana dog coin “For the people, by the people”
“Fed up with the toxic ‘Alameda’ tokenomics, the contributors to Bonk wanted to make a fun memecoin where everyone gets a fair shot,” reads the official website.
This has certainly hit a point in the Solana community and the crypto world as a whole since the token is now on the market 214% in the last 24 hours.
Solana hits 3.3k TPS despite an absolute tsunami of transactions around $BONK and a series of over tokens pic.twitter.com/BXXUFmKpmz
— Solana Legend 🎒 (@SolanaLegend) January 4, 2023
A recently tweet prepared by Solana legendco-founder of Hassle free capital shows that the memecoin is skyrocketing Solana usage, with the Blockchain 3,300 transactions registered per second. The metric then proves that Solana, the “Ethereum Killer” is not dead and backed by a bullish community.
With the token with a impressive burning speed and big exchanges Bonk listed for open trading, Bonk’s credibility also skyrockets.
Vague white paper and extreme returns
Though the hot new memecoin is leading the charge for Solana in 2023, it’s not without confounding. Their white paper itself is very vague and only describes the distribution of the 100 trillion tokens to different parties.
According to data from orcaan on-chain liquidity Automated Market Maker (AMM) by Solana, Bonk has a very unsustainable rate of over 1% per hour just for providing liquidity.
However, this could only be short-term to attract additional capital from community investors.
Crypto Total Market Cap at $778 Billion on Daily Chart | Chart: TradingView.com
Although 50% of the total BONK token supply has been airdropped, investors might be wary that the remaining half is held by the early contributors.
To counteract this fear, early contributors to the project have a three-year lock-up period, meaning the tokens allocated to them are locked until the three-year grace period expires.
It’s important to acknowledge the contributors’ drive to bring power back to the community of Solana.
However, how they will do so has not been clearly stated and not detailed in their whitepaper. Although Bonk has a positive effect SOLIt remains to be seen whether this project will actually live up to the hype surrounding it.
-Featured Image Yahoo Finance
Source: Crypto News Deutsch